A new report by Property Finder reveals that apartments remain the top choice for both renters and buyers in Dubai’s property market, reflecting a sustained trend in the emirate’s real estate sector. The findings highlight that studio and one-bedroom apartments are witnessing the highest demand, a pattern driven largely by affordability, space efficiency, and location benefits.

Rising Demand for Smaller Units

According to the report, around 80% of rental searches in November 2025 focused on apartments, while villas and townhouses accounted for just 20%. Studio apartments and one-bedroom units, in particular, saw an uptick in demand—signaling a shift toward compact living options that still offer a good quality of life.

Buyer Interest Mirrors Rental Trends

On the purchase side, the trend continues. Apartments made up 58% of all property search activity in November, compared to a slight decline in interest in villas. Notably, about 70% of apartment-related searches were for one- and two-bedroom units, further emphasizing the demand for mid-sized homes that balance cost and comfort.

Mortgage Trends Reflect Middle-Income Buyer Activity

Insights from Mortgage Finder for November 2025 show that buyers earning between AED 20,000 and AED 40,000 per month represented the largest group applying for mortgages—accounting for 38% of total applications, up from 30% the previous month.

Interestingly, 85% of this income group is purchasing for personal use, while 15% are entering the market as investors. This reflects the growing confidence of middle-income earners in Dubai’s property sector, as well as their desire for long-term living solutions in the city.

Investment Behavior by Income Bracket

While the majority of mid-income earners are buying homes to live in, 5.1% of them are investing in real estate, compared to just 2.04% of higher-income buyers (earning AED 60,000 to AED 80,000 or more). This suggests that mid-tier investors are more active in the apartment market, likely due to the lower entry cost and potential rental yields.

In contrast, high-income individuals continue to favor villas. Among buyers earning between AED 40,000 and AED 60,000, 13.27% prefer villas, compared to 8.16% who choose apartments. For those earning above AED 80,000, villas remain the top residential choice, with 10.2% opting for them, versus just 4.08% choosing apartments.